The policy agenda laid out at the National People’s Congress today is a reasonably pro-growth one. The new fiscal plans are supportive, monetary policy continues to have an easing bias, and the Premier reiterated recent welcome messages about channelling more funding to developers and taking a more constructive approach to the private sector. Taken together, this should deliver some near-term improvements in economic conditions and sentiment. But with stimulus being kept modest and base effects turning less favourable, the government’s target of “around 5.0%” still looks like a stretch to us.
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